Superstitions and their impact on property prices in Singapore

Many beliefs are powered by superstitions – what colour clothes we wear to weddings, the number of the shop we choose to start a business in, the usefulness of investment banking, etc. In few places are these superstitions more powerful than the residential property market. After all, homes are not just about money; they’re about psychological comfort too. Here are a few prevalent ones in Singapore:

1. The effect of four and eight

Way back in 2013, it was publicised in the Straits Times that condo prices were affected by numbers in the address. Between 1995 and 2011, homes with the number eight in the address sold at an average premium of 0.9 percent, and homes with the number four in the address sold at an average discount of 1.5 percent.

(Sadly a similar study has not been conducted in more recent times – but follow us on Facebook and we’ll keep you updated).

The number eight is considered lucky in Chinese (it sounds like the word for luck), and the more eights there are the better. A unit with #8-88 is probably going to see a big premium from superstitious buyers.

The number four sounds like the word “die”, and is considered to be pantang (unlucky). Units such as #4-44 is going to be a great deal for a more pragmatic home buyer. In fact, if superstition does not faze you and are looking for a discount, one common strategy is to look for units with unlucky numbers. Try it at your next home search (check the listings on 99.co)

2. Feng Shui structures

Not many people realise that Marina Bay Sands’ design is based on Feng Shui principles. In 2012, Yahoo! News reported that:

“Feng shui experts have called the Marina Bay area a hub of prosperity for Singapore. And as long as the landmarks around it prosper, so will the country. Master Gwee Kim Woon of Fulu Geomancy Centre said that the three-tower structure of Marina Bay Sands represents luck, prosperity, longevity.”

If you’ve seen buildings with a hole in them (like The Jade), they also often have it for Feng Shui reasons. Feng Shui principles also recommend against buildings with diamond patterns, which is why you seldom see this in Asia.

This doesn’t just stop at the exterior architecture. When it comes to interior design, many Singaporeans are happy to pay anything from 50 cents to a dollar per square foot, for a Feng Shui consultation.

Buyers who are big Feng Shui believers are less willing to buy units that face cemeteries, have a lot of ceiling beams, or are oriented in a direction that does not match their personal “star”. There are whole books written on the exact rules.

Interestingly, non-believers may follow the principles too. After all, they might have to sell or rent to someone who does believe in it.

3. The Hungry Ghost Festival

Singaporeans. We can’t stop eating even after we’re dead. Anyway, the Hungry Ghost Festival (the Seventh lunar month) is a time when the gates of the Underworld swing open. This releases scary things like the souls of the dead, the spirits that shepherd them, tax auditors, etc. While it’s common to compare it to Halloween, that’s not entirely right. The Hungry Ghost Festival is a dignified religious practice, in which Taoists commemorate and remember their ancestors.

In 2015, a study by the Straits Times found that significant discounts can come from buying during this period. Chinese buyers (the study was ethnicity specific) often got discounts of around 10.89 percent on resale flats, and discounts of around 8.09 percent on developer sales.

This could be due to certain Taoist beliefs, which hold that it is unlucky to buy, sell, or renovate a house during this period (but note that Taoism is a very individualistic belief system, so not all Taoists subscribe to this. Some will even dismiss it as superstition).

Although no study has verified the impact on volume of transactions, many property agents will insist that fewer people buy at this period. Regardless, it’s something non-believers could try to take advantage of. Move in and look for discounts!

4. Stigmatised property

We have had a prior article discussing the impact of nearby graveyards on property prices. But as a quick recap, a stigmatised property tends to have short term pricing issues. When everyone still remembers someone was disassembled like a piece of IKEA furniture in the living room, they are a little less willing to buy.

Traditional Chinese superstitions would dictate that such places are tainted. But contrary to popular belief, it is seldom about ghosts. Rather, the “residue” of intense negative emotions creates a yin (negative energy) imbalance. This can cause sickness, melancholia, and affect pregnancies.

(And then sometimes, it really is just about full-on The Conjuring level haunting.)

But the point is it’s not just about death and murder. Any house which was once home to intense negative energies, such as the home of an unhappy family who were harassed by loan sharks, can put off superstitious buyers. Some, for example, refuse to even buy homes that have been foreclosed on.

The traditional solution to this has been the ghost buster at Katong Shopping Centre (Google it, he’s out there). $88 to get rid of negative energy, $100 to get rid of a ghost. More than one property agent has hired him to “clean” a house, and appease a potential buyer.

What do superstitions mean for the average buyer?

One word: discounts. If you are not put off by the superstitions surrounding a property, they can be a great opportunity to save money. So go ahead and browse listings, and find units with #4-44 ,where someone was murdered before, and buy it on the Seventh Lunar Month.

At almost 10 percent off the house, the savings are more than enough to pay for an army of ghost busters!

(Unless your head starts spinning around and you begin speaking strange languages. Then money may be the least of your concerns).